public credit suisse real estate fund international · global real estate may 2018 3/19...

Switzerland: Only for qualified investors in

accordance with the Swiss Federal Act on

Collective Investment Schemes (CISA)

Credit Suisse Real Estate Fund

International Capital increase

Public

Credit Suisse Asset Management (Switzerland) Ltd.

Global Real Estate – International

May 2018

May 2018 Global Real Estate 2/19

Capital increase to be carried out between

June 4 and June 15,

2018

Issue will be conducted according to the "best

effort" method

Centrally located properties with low risk

profiles, long-term

rental agreements, and tenants with good

creditworthiness

The investment focus is on further expanding the real estate portfolio

A real estate pipeline worth more than CHF 1 bn has already been identified

Investments are primarily made in office and

retail use properties

Credit Suisse Real Estate Fund International At a Glance


Switzerland's largest

real estate fund, investing directly in real

estate worldwide1

Highly diversified: Invested in 43 properties in 10

countries with a market value of over CHF 3 bn2

Average annual total

return in CHF of 5.2% since launch;

performance of 11.5% in 20172

Cost-efficient: TER MV of 0.97% in 2017

financial year

Foreign currency risks largely hedged

1 FINMA 2017 2 Last data point: December 31, 2017 Historical performance and financial market scenarios are not reliable indicators of future results.

Long-term track

record: Launched in February 2005

Credit Suisse Real Estate Fund International Long Track Record and Strong Returns


Credit Suisse Real Estate Fund International Over 500 Tenants in 43 Properties in 10 Countries Worldwide1

1 Last data point: December 31, 2017

Source: Credit Suisse


Existing Portfolio

Number of countries invested in 10

Number of properties 43

Number of tenants >500

Market value of properties CHF 3.3 bn

Average volume per property CHF 77 mn

Credit Suisse Real Estate Fund International Portfolio Diversification as of December 31, 2017

Credit Suisse Real Estate Fund International

Country Allocation (height of each bar represents percentage weight of country/region)

Diversification by Type of Use

CHF 10 mn

Last data point: December 31, 2017


Diversification by Country

Office: 82.1%

Retail: 9.0%

Parking: 6.7%

Warehousing: 0.9%

Cinema/hotel/restaurant:0.7%

Other: 0.6%

Apartments: 0.2%

2.7%

3.6%

4.0%

6.0%

8.0%

10.4%

10.4%

15.0%

17.0%

22.9%

0% 5% 10% 15% 20% 25%

Ireland

New Zealand

Chile

Netherlands

UK

Japan

Germany

Canada

Australia

US


Boston (US), Atlantic Avenue

470

Office property

Date of acquisition: 09/2009

Year of construction: 1927/2001

Investment (CHF): 113.5 mn1

Market value (CHF): 204.6 mn2

Effective NR: 8.5%3

NR to market value: 4.7%4

6.2% of the portfolio

Vancouver (CAN), "The

Exchange"

Office/hotel property

Date of acquisition: 2011

Year of construction: 2018



Projected rent (CHF): 11.5 mn


Brisbane (AUS), Elizabeth

Street 55

Office/retail property



Investment (CHF): 126.8 mn 1


Effective NR: 8.7%3



Dublin (IRL), La Touche

House

Office property





Effective NR: 10.4%3



Credit Suisse Real Estate Fund International Properties in the Fund's Net Assets (Excerpt)

1 Purchase price plus transaction costs and further investments during the period in which the property is held (until December 31, 2017) 2 As of December 31, 2017 3 Net return to investment costs as of December 31, 2017 4 Net return to market value as of December 31, 2017 Historical performance and financial market scenarios are not reliable indicators of future performance.

Source: Wüest Partner AG, Credit Suisse


900

950

1'000

1'050

1'100

1'150

1'200

1'250

1'300

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Performance in CHF

CS REF International - Nettoinventarwert CS REF International - Kurs

Credit Suisse Real Estate Fund International

Key Figures 22

30

33 35

35 37

37 39

40

41

41

42

42

20.00

25.00

30.00

35.00

40.00

45.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Distribution in CHF

2.3

%

2.6

%

2.7

%

3.2

%

3.7

%

3.6

%

3.7

%

4.0

%

4.0

%

3.8

%

3.7

%

3.6

%

3.4

%

3.2

%

3.3

%

3.5

%

3.2

%

3.1

%

2.9

%

2.9

%

2.8

%

3.1

%

2.8

%

2.8

%

2.7

%

2.7

%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Dividend yield

7.9

%

3.1

%

2.8

% 4

.3%

5.2

%

7.6

%

7.3

%

6.4

%

6.0

%

5.9

%

4.5

%

4.5

%

6.6

%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Rate of loss of rental income

CS REF International Ø Average for all Swiss listed real estate fund

Source: Credit Suisse Last data point: December 31, 2017

900

950

1000

1050

1100

1150

1200

1250

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018CS REF International - Net Asset Value CS REF International - Price

CHF


Credit Suisse Global Real Estate Leading Real Estate Platform

1 Sources: INREV/ANREV Fund Manager Survey 2017

2 Last data point: December 31, 2017

3 Last data point: December 31, 2017; including assets under management in direct and indirect investment vehicles Source: Credit Suisse

Track record in real estate

management

since 1938 One of top 4 real

estate platforms in

Europe1

CHF 54.5 bon AuM3

>1,300 properties

worldwide2

Invested in 18 countries around the

world2

160 property

experts worldwide2

5 locations globally

(Zurich, Frankfurt, New York,

Singapore, and London)2

CHF 1.2 bn for

renovations and construction

> 300,000 m2 of leasing business


Source: Credit Suisse Last data point: December 31, 2017

In-depth knowledge of each investment market and extensive network of local partners guarantee access to the best real

estate and professional management

Vancouver

Chicago Boston

New York

Houston Washington, D.C.

Toronto

Santiago

São Paulo

Montreal

Zurich

London

Amsterdam

Leeds

Glasgow

Hamburg

Berlin

Munich

Frankfurt

Madrid

Lisbon

Lyon

Milan Geneva

Fukuoka

Singapore

Tokyo

Perth

Melbourne

Brisbane Sydney

Wellington

Canberra

San Francisco

Dublin

Toulouse

Cities where real estate is owned Offices of Credit Suisse Global Real Estate Location of Credit Suisse Hedging-Griffo

Nagoya

Credit Suisse Global Real Estate Strong Global Network – Offices in Europe, US, and Singapore

Los Angeles Osaka

Adelaide


Credit Suisse Global Real Estate In-House Expertise

Coverage of the entire value chain and continuous improvement

Management functions and core processes are performed in-house with more than 160 property experts; outsourcing of supporting functions

High standards in work processes and tools within the departments and in the selection and monitoring of external service providers

Value Chain

Research Asset

allocation

Invest-

ment

strategy

Structur-

ing

Due

diligence

Acquisi-

tion and

sales

Fund and

portfolio

manage-

ment

Property

asset

manage-

ment

Construc-

tion and

develop-

ment

Risk management

Cooperation with external partners

Finance, controlling and reporting

Legal and tax

Employees

Senior management 8

Investment management 15

Acquisition and sales 26

Property asset management 33

Construction and development 28

Finance, controlling and treasury 23

Real estate strategy and research 14

Risk management 3

Sustainability 2

IT, management services, etc. 8

Total 160

Employee Structure

Source: Credit Suisse Last data point: December 31, 2017 For illustrative purposes only.


Dublin (IRL) Office property


Location: IFSC

Purchase price (CHF): 119 mn1

Occupancy: 100%

Net return: 5.6%2

WAULT3: 6.0 years

Rentable floor area: 17,490 m2

1Anticipated purchase price 2 Net returns compared with market value in local currency = net rental income / anticipated purchase price 3Weighted average unexpired lease term Historical performance and financial market scenarios are not reliable indicators of future performance.

Credit Suisse Real Estate Fund International Very Attractive Property Pipeline of over CHF 1 bn (Excerpt)


Stuttgart (GER)


Year of construction: 1898/1989

Location: CBD


Occupancy: 100%

Net return: 5.0%2

WAULT3: 4.0 years


Warsaw (POL)



Location: CBD


Occupancy: 96%

Net return: 5.3%2

WAULT3: 9.0 years


Brisbane (AUS)


Year of construction: 1983, 2005

Location: CBD


Occupancy: 81%

Net return: 6.3%2

WAULT3: 3.5 years



Credit Suisse Real Estate Fund International Key Figures on Capital Increase

Type of issue Best-effort basis with subscription rights trading

Subscription period June 4–15, 2018, 12:00 noon (CET)

Subscription rights trading June 4–13, 2018

Payment of securities

subscribed

June 22, 2018

Issue price CHF 1,100.00 net per share

Subscription ratio 7:1 (seven existing share certificates to one new one)

Target volume CHF 395 million

Issuing commission 1.5% of NAV (included in the issue price)

Fund unit identifier Security number: 1 968 511

ISIN: CH 001 968 511 1

Subscription rights identifier Security number: 41 328 818

ISIN: CH 041 328 818 1



Credit Suisse Real Estate Fund International Brief Overview

Name Credit Suisse Real Estate Fund International

Portfolio manager Marc-Oliver Tschabold

Launch February 2005

Portfolio market value CHF 3,313 mn (December 31, 2017)

Distribution Annual

Trading Over the counter with an average monthly trade volume of CHF

26.1 mn

Redemption Annual with a notice period of 12 months

Unit of account CHF (foreign currencies are 95% hedged against the Swiss franc)

Management fee 0.6% p.a. (total assets)

TERREF MV (December 31,

2017)

0.97%

Target return 5.0–6.0% p.a. over 5 years


Historical performance and financial market scenarios are not reliable indicators of future performance.


Global Real Estate Your Contacts

Marc-Oliver Tschabold

Portfolio Manager

Vice President

[email protected]

Tel. +41 44 333 11 35*

Do you have questions about the capital increase?

We can give you the answers.

Ulrich Braun

Real Estate Strategies & Advisory

Managing Director

[email protected]

Tel. +41 44 332 58 08*

* Please note that telephone calls to our numbers may be recorded. We assume that, by calling us, you accept this business practice.

Apoquindo 5400, Santiago de Chile, Chile

Appendix


Glendale, LA (US), 207

Goode Avenue

Office property

Date of acquisition: 29.06.2017


Location: Glendale


Gross rent: 6.0 mn1

Gross yield: 9.9%

Rentable floor area: 17,5681


Portland (US), 1320 SW

Broadway

Office property



Location: CBD


Gross rent: 4.8 mn1

Gross yield: 5.2%



Chicago (US), 1333 North

Kingsbury Street

Office property



Location: Downtown


Gross rent: 2.4 mn1

Gross yield: 8.7%



Adelaide (AUS), 25 Grenfell

Street




Location: CBD


Gross rent: 9.9 mn1

Gross yield: 9.7%



Credit Suisse Real Estate Fund International Purchases and Sales in 2017

1 As of December 31, 2017 Historical performance and financial market scenarios are not reliable indicators of future performance.

Purchases



1 As of December 31, 2017 Historical performance and financial market scenarios are not reliable indicators of future performance.



Purchases Sales

Osaka (JPN), "Edge

Honmachi"

Office property



Location: CBD


Gross rent: 3.1 mn1

Gross yield: 5.9%



Cardiff (UK), 2 Central

Square

Office property


Year of construction: Sept. 2018

Location: CBD


Gross rent: 4.1 mn1

Gross yield: 6.0%



San Francisco (US), 114

Sansome Street



Date of sale: 01.02.2017


Location: CBD


Sale price (CHF): 145.0 mn1


Amsterdam (NL), "Spectrum"

Office property




Location: Sloterdijk







1 Last data point: March 23, 2018 Historical performance and financial market scenarios are not reliable indicators of future performance.

Purchases Sale

London (UK), 11-19

Monument Street

Office property



Location: CBD


Gross rent: 8.4 mn1

Gross yield: 5.4%



Wellington (NZ), 195

Lambton Quay (Purchase in

May) Office property



Location: CBD


Gross rent: 5.8 mn1

Gross yield: 8.0%



Sydney (AUS), 52 Goulburn

Street

Office property




Location: CBD





Disclaimer

The information provided herein constitutes marketing material. It is not investment advice or otherwise based on a consideration of the personal circumstances of the addressee nor is it the result of objective or independent research. The information provided herein is not legally binding and it does not constitute an offer or invitation to enter into any type of financial transaction. The information provided herein was produced by Credit Suisse Group AG and/or its affiliates (hereafter "CS") with the greatest of care and to the best of its knowledge and belief. The information and views expressed herein are those of CS at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. CS provides no guarantee with regard to the content and completeness of the information and does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The information provided herein is for the exclusive use of the recipient. Neither this information nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). It may not be reproduced, neither in part nor in full, without the written permission of CS. The key risks of real estate investments include limited liquidity in the real estate market, changing mortgage interest rates, subjective valuation of real estate, inherent risks with respect to the construction of buildings and environmental risks (e.g., land contamination). Credit Suisse Real Estate Fund International is an investment fund established under Swiss law in the category of “real estate funds,” in accordance with the Swiss Federal Act on Collective Investment Schemes (CISA) of 23 June 2006, for qualified investors as defined in art. 10, para. 3 and 4 of the CISA. The fund management company is Credit Suisse Funds AG, Zurich. The custodian bank is Credit Suisse (Switzerland) Ltd, Zurich. Subscriptions are only valid on the basis of the current sales prospectus with the integrated fund contract, the simplified prospectus, and the most recent annual report (or semi-annual report, if more recent). The prospectus, the simplified prospectus and/or the Key Investor Information Document (KIID) and the annual and half-yearly reports may be obtained free of charge from the fund management company or from any branch of Credit Suisse (Switzerland) Ltd. in Switzerland. Copyright © 2018 Credit Suisse Group AG and/or its affiliates. All rights reserved

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